Chemed Corporation (CHE) reported adjusted earnings per share (EPS) of $6.60 in the fourth quarter of 2023, up 35% year over year. The figure also surpassed the Zacks Consensus Estimate by 5.6%.The company’s GAAP EPS was $5.90, up 42.9% from last year’s reported figure. For the full year, the adjusted EPS was $20.30, reflecting an 8.1% increase from the year-ago period.Revenues in DetailRevenues in the reported quarter improved 7.2% year over year to $585.9 million. The metric missed the Zacks Consensus Est ...

Call Start: 10:00 January 1, 0000 10:42 AM ET Chemed Corporation (NYSE:CHE) Q4 2023 Earnings Conference Call February 28, 2024, 10:00 am ET Company Participants Holley Schmidt - Assistant Controller Kevin McNamara - President & CEO Mike Witzeman - CFO Nick Westfall - CEO, VITAS Healthcare Corporation Conference Call Participants Joanna Gajuk - Bank of America Michael Murray - RBC Capital Markets Holley Schmidt [Call Starts Abruptly] Financial Results for the Fourth Quarter of 2023 ended December 31, 2023. B ...

Revenue Dependence and Financial Performance - VITAS generates over 90% of its revenue from the Medicare program, indicating significant reliance on government funding[40] - Over 95% of VITAS' revenue comes from Medicare and Medicaid payments, primarily on a "per diem" basis, making the company vulnerable to cost management challenges[86] - VITAS derives over 95% of its net patient service revenue from Medicare and Medicaid, making its profitability highly dependent on managing service costs[154] - VITAS' net patient service revenue and profits are highly dependent on payments from Medicare and Medicaid, with potential material impacts from changes in payment rates or methods[184] - VITAS' profitability could be negatively impacted by potential reductions in Medicare and Medicaid payments, particularly for hospice services[155] Regulatory Compliance and Legal Risks - VITAS has satisfied the requirements of a Corporate Integrity Agreement with the Office of the Inspector General, concluding on June 22, 2023[54] - The Medicare Conditions of Participation require hospices to meet specific standards to receive payments, with ongoing compliance being critical[74] - VITAS must maintain clinical records for each patient, ensuring compliance with regulatory requirements[52] - The company is subject to heightened scrutiny from state and federal regulators regarding acquisitions of non-profit hospice programs, which may increase costs or hinder future acquisitions[85] - VITAS maintains compliance with applicable licensure and certification requirements, but non-compliance could adversely affect operations and participation in Medicare and Medicaid programs[111] - The company faces potential penalties under the Anti-Kickback Law, which could include fines and exclusion from Medicare and Medicaid programs[96] - Legislative and regulatory changes could require VITAS to invest substantially in new information systems, negatively impacting profitability and cash flows[213] Market Competition and Industry Landscape - The hospice care industry is highly fragmented, with VITAS being one of the largest providers, competing against numerous small, community-based hospices[42] - The company faces competition from national and regional hospice providers, as well as other healthcare entities diversifying into hospice care[70] - VITAS faces intense competition in the hospice care market, competing with national and regional companies, physician groups, and home health agencies[218] Operational Challenges and Workforce Issues - The current nationwide shortage of qualified nurses and aides is impacting VITAS' ability to provide quality hospice services, leading to increased wages and benefits to attract and retain staff[216][217] - VITAS' operations are significantly exposed to hurricanes due to its headquarters in South Florida, which could adversely affect billing and service delivery during major weather events[225] - The company has established a reserve for environmental liabilities related to historical contamination, but actual cleanup costs may exceed current estimates, potentially impacting financial condition[228] Financial Management and Strategic Decisions - The company has engaged in twelve significant acquisitions or divestitures since its inception, focusing on maximizing shareholder value[35] - VITAS' ability to repay or refinance its indebtedness depends on operating performance, which may be affected by various external factors[208] - The company has not experienced any known data breaches that compromised customer data, but it maintains safeguards against cyber-attacks[182] - VITAS has historically incurred debt to finance operations, and insufficient cash flows may force the company to reduce capital expenditures or restructure debt[230][231] Employee Engagement and Corporate Culture - The "Difference Maker Program" provided over $31.6 million in bonuses to employees during the pandemic, with $8.9 million remaining accrued for bonuses earned through June 2024[146] - The company emphasizes the importance of a diverse and inclusive workforce to foster innovation and better serve its diverse customer base[173] - Roto-Rooter has implemented extensive training programs for employees, focusing on safety, human resources, and regulatory compliance[171] Risk Management and Future Outlook - VITAS maintains a reputation management risk program to mitigate adverse publicity and maintain referral sources' willingness to refer patients[201] - VITAS' future success is contingent on the continued service of senior management personnel, with potential negative impacts from the loss of key management[191] - Future public health concerns, similar to the COVID-19 pandemic, may negatively impact VITAS' ability to operate and serve patients, affecting demand for services[232]

Chemed (CHE) reported $585.91 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 7.2%. EPS of $6.60 for the same period compares to $5.39 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $587.45 million, representing a surprise of -0.26%. The company delivered an EPS surprise of +5.60%, with the consensus EPS estimate being $6.25.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Chemed (CHE) came out with quarterly earnings of $6.60 per share, beating the Zacks Consensus Estimate of $6.25 per share. This compares to earnings of $5.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.60%. A quarter ago, it was expected that this operator of the Roto-Rooter plumbing service and Vitas Healthcare hospices would post earnings of $4.92 per share when it actually produced earnings of $5.32, delivering a surp ...

Revenue Performance - Roto-Rooter segment revenue for Q4 2023 was $235.9 million, a decrease of 1.1% compared to the prior year[6]. - VITAS segment net patient revenue increased by 13.6% to $350.0 million in Q4 2023, driven by an 11.0% increase in average daily census[16]. - Total service revenues for the year ended December 31, 2023, were $2.26 billion, an increase from $2.13 billion in 2022[30]. - Revenue increased by 7.2% to $585.9 million[44]. - Total net revenue for Homecare segment was $1,136,437, an increase from $1,039,211 year-over-year[1]. - Total net revenue for Inpatient segment was $112,419, up from $102,361 year-over-year[1]. - Service revenues for VITAS reached $349,998 in 2023, compared to $235,914 in 2022, reflecting a significant increase of approximately 48.3%[63]. Profitability Metrics - Adjusted EBITDA for VITAS, excluding Medicare Cap, rose by 61.6% to $83.3 million, with an adjusted EBITDA margin of 23.7%, an increase of 705 basis points[18]. - Net income for Chemed in Q4 2023 was $90.1 million, up 45.0% from $62.1 million in Q4 2022[30]. - GAAP Diluted Earnings-per-Share (EPS) rose by 42.9% to $5.90[44]. - Adjusted Diluted EPS increased by 35.0% to $6.60[44]. - Adjusted EBITDA for Chemed Corporation in 2023 reached $139,644 thousand, up from $112,378 thousand in 2022, reflecting a growth of 24%[68]. - Adjusted net income for Q4 2023 was $100,813 thousand, a significant increase from $73,623 thousand in Q4 2022, marking a growth of 37%[69]. - The company’s EBITDA for the VITAS segment in 2023 was $224,867 thousand, compared to $196,680 thousand in 2022, showing an increase of 14%[68]. Cash and Debt Position - The company had total cash and cash equivalents of $264.0 million and no debt as of December 31, 2023[10]. - The cash and cash equivalents at the end of 2023 stood at $263,958, a significant increase from $74,126 at the end of 2022, representing a growth of approximately 256%[62]. - As of December 31, 2023, Chemed had approximately $314.1 million remaining under its share repurchase authorization[50]. Cost and Expense Management - Total costs and expenses for Chemed consolidated were $474,518 in 2023, up from $395,120 in 2022, marking an increase of about 20.1%[63]. - Interest expense for Chemed Corporation in 2023 totaled $3,108 thousand, a decrease from $4,584 thousand in 2022, reflecting a reduction of 32%[68]. - The Retention Program expenses for 2023 totaled $20.8 million, compared to $19.6 million in 2022[15]. - Capital expenditures for 2023 were $56,854, slightly down from $57,325 in 2022, indicating a decrease of about 0.8%[62]. Operational Metrics - Total admissions increased to 15,867 from 14,829 in the previous year[1]. - Average daily census for Homecare increased to 15,646 from 14,012 year-over-year[1]. - Total discharges increased to 15,705 from 14,862 in the previous year[1]. - The company has 26 Medicare provider numbers with a cap cushion of greater than 10%[45]. Future Outlook - For 2024, VITAS revenue is expected to increase by 9.0% to 9.8%, with adjusted EBITDA margin estimated between 17.8% and 18.3%[22]. - Roto-Rooter is projected to achieve full-year 2024 revenue growth of 3.5% to 4.0%[51]. - The adjusted EBITDA margin for 2024 is expected to be between 28.7% and 29.1%[51]. - Full-year 2024 earnings per diluted share are estimated to be in the range of $23.30 to $23.70[23]. Shareholder Returns - Chemed repurchased 79,512 shares of stock for $46.0 million at a cost per share of $579.09 during the quarter[50]. - The average number of shares outstanding for Chemed Corporation in Q4 2023 was 15,270 thousand, up from 15,052 thousand in Q4 2022[69].

CINCINNATI--(BUSINESS WIRE)--Chemed Corporation (NYSE:CHE) announced today that the Board of Directors has declared a quarterly cash dividend of 40-cents per share on the Company’s capital stock, payable on March 15, 2024, to shareholders of record as of February 26, 2024. This is equal to the dividend paid in December 2023. This represents the 211th consecutive quarterly dividend paid by Chemed in its 52 years as a public company. Listed on the New York Stock Exchange and headquartered in Cincinnati, Ohio ...

Chemed Corporation (CHE) is well-poised for growth in the coming quarters, backed by the strong prospects of the VITAS Healthcare and Roto-Rooter segments. The company delivered favorable solvency as of the end of the third quarter of 2023, generating investors’ optimism. However, macroeconomic headwinds and competitive disadvantages are discouraging for the company.In the past year, this Zacks Rank #3 (Hold) stock has increased 18% compared to the 6.4% rise of the industry and a 21.2% rise of the S&P 500 c ...

Chemed Corporation (NYSE:CHE) Q3 2023 Earnings Conference Call October 26, 2023 10:00 AM ET Company Participants Holley Schmidt - Assistant Controller Kevin McNamara - President and Chief Executive Officer Dave Williams - Executive Vice President and Chief Financial Officer Nick Westfall - President and Chief Executive Officer, VITAS Healthcare Corporation Conference Call Participants Ben Hendrix - RBC Capital Markets Joanna Gajuk - Bank of America Holley Schmidt Good morning. Our conference call this morni ...

UNITED STATES (Mark One) x Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended September 30, 2023 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 1-8351 CHEMED CORPORATION (Exact name of registrant as specified in its charter) Delaware 31-0791746 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 255 E. Fifth Street, Suite 2600, Cincin ...